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Home My WebLink AboutWORK SESSION SUMMARY-04/14/2020-Work SessionSocial Sustainability 321 Maple Street PO Box 580 Fort Collins, CO 80522 970.221.6758 MEMORANDUM DATE: April 17, 2020 TO: Mayor Wade Troxell & City Councilmembers THRU: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager Jacqueline Kozak-Thiel, Chief Sustainability Officer Beth Sowder, Social Sustainability Department Director FROM: Sue Beck-Ferkiss, Social Policy & Housing Program Manager, SSD Tom Leeson, Deputy Director, Planning Transportation and Development RE: Work Session Summary April 14, 2020 – Affordable Housing Priorities Introduction: At the April 14, 2020 City Council Virtual Work Session, Jackie Kozak-Thiel and Sue Beck-Ferkiss from Sustainability Services reported to Council on four items as requested at a City Council Meeting in October 2019. All Councilmembers were present. The topics were: Homebuyer Assistance Program, Elevation Community Land Trust, Inclusionary Housing Ordinance and Affordable Housing Impact Fee. Staff also sought guidance on strategic housing planning options. Councilmembers’ discussion and direction included:  The need for future framing - What are the tools we have, what are the tools we need, and how do we make an impact?  The need for broad stakeholder and community engagement especially with end users from various income levels and people with lived experience in challenges related to housing affordability.  Interest in looking at a wide range of tools, options and policies to help alleviate the affordability issues related to housing in our community.  Appreciation for the partnership with Elevations Community Land Trust.  Understanding that the City’s Home Buyer Assistance Program may not be needed due to other programs – with some concern that Impact Development Fund’s program with similar terms may not meet community needs. Some question about whether a new City program was required for households with incomes greater than 80% area median income (AMI). (Follow-up information below).  The need to continue to find ways to support affordable and attainable home ownership opportunities.  Direction that while conditions are not right for an Inclusionary Housing Ordinance at this time, this should be reconsidered in 2-3 years.  Cautious support for continuing to investigate an affordable housing impact fee with the development impact fee update in 2021 since a legal nexus was established and this can be tailored in a way to least disrupt or negatively impact development.  Some interest in exploring other sources of revenue like sales tax or property tax. DocuSign Envelope ID: D12B6305-C85C-416B-9113-B9DF214C4BCB 2  Support for broadening the scope of the next strategic housing plan in both income levels and tools considered.  Excitement around getting the housing planning process and work of the Council Ad Hoc committee started. Follow-up items  Clarification regarding Home2Health state grant – this funding can only be used for Land Use Code Updates and Housing Policy to lead to systemic improvements and long-term impacts. It is not available to invest in housing or for direct service.  Down Payment Assistance Programs (DPA): o DPA is available through private banks, Colorado Housing and Finance Authority, and Impact Development Fund (IDF).  IDF can serve the households with incomes up to 80% area median income with the Division of Housing (DOH) grant. Because they have this state funding, the City will not need to fund IDF at this time. If they are successful at deploying the DOH funds, they can apply to the City’s Competitive Process for additional funding for Fort Collins households.  Any funding left in the City program when IDF’s program is up and running can be returned to the completive process to be used to support affordable home ownership such as a Habitat for Humanity home.  Staff will continue to explore additional ways to support home ownership. o Families with higher incomes can access Colorado Housing Finance Authority Programs. For example, their Larimer County maximum income limits vary by program but in summary are:  up to $120,000 for households regardless of size,  and up to $122,000 for 3 person households.  Recognizing that the density needed to recommend an Inclusionary Housing Ordinance is not achievable under current regulations, staff recommends further analysis beyond the consultant’s example of a 20% density increase including a methodology that accounts for scenarios that reflect implementation of City Plan strategies and consider removing other regulatory barriers to achieving our land use goals.  In answer to the question about Elevation Community Land Trust’s track record, Elevation is one of the newest community land trusts in Colorado, although others such as the Colorado Community Land Trust have been operating for decades. Since inception less than 2 years ago, Elevation’s trust now holds 77 homes in trust. Their 2020 goals were to acquire 209 homes and sell 90 to buyers, but COVID-19 impacts may slow that down for this year. While the City’s partnership with Elevation is not exclusive, their unique model capitalizes them in a way that allows them to bring subsidy to projects. Most CLTs do not have that capacity. Still to come:  Requested follow-up regarding the Housing Manager position and the Council Ad Hoc committee will be shared with Council separately.  Consultant Economic & Planning Systems Inc. has been asked to include an assessment of development potential available in the City as we look at long term planning horizons from City Plan and how that could affect conditions for a successful Inclusionary Housing Ordinance.  More information on how the COVID-19 pandemic will affect the City’s housing sector.  Staff will continue public engagement through Home2Health and internal analysis to inform the next strategic housing plan.  Staff will provide regular quarterly updates to Council on the on-going planning process in addition to the Council Priorities Dashboard. The next one will be in June. DocuSign Envelope ID: D12B6305-C85C-416B-9113-B9DF214C4BCB Social Sustainability 222 LaPorte Ave PO Box 580 Fort Collins, CO 80522 970.221.6758 MEMORANDUM DATE: April 16, 2020 TO: Mayor Troxell & City Councilmembers THRU: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager Jackie Kozak Thiel, Chief Sustainability Officer FROM: Beth Sowder, Social Sustainability Department Director RE: April 14, 2020 Work Session Summary re: Homeward 2020 and Homelessness Update Introduction At the April 14, 2020 Council Work Session, an update on Homeward 2020 and initiatives affecting persons experiencing homelessness was provided by Jeff Mihelich, Deputy City Manager; Holly LeMasurier, Homeward 2020 Director; and Beth Sowder, Social Sustainability Department Director. Council Direction Sought: This was an update, so no specific questions were asked of City Council. Discussion Council was appreciative of the work being done by Homeward 2020, community partners, and the City on homelessness issues. Key discussion points included:  Support to continue working together on affordable housing efforts and strategies  Interest in how the Northern Colorado (NoCo) Continuum of Care will bring funding into the region to support affordable housing and supportive services  Supportive of the plan for Homeward 2020 transition to the NoCo Continuum of Care to continue the legacy work and continue and enhance it in a regional effort  Council would like to continue engagement and understand how efforts are moving forward  Supportive and appreciative comments about the great leadership of Homeward 2020, the focus on making homelessness rare, short-lived, and non-recurring, collaborative work with service providers and collaboration on the spectrum of services DocuSign Envelope ID: 14F4E27D-5616-444F-9C99-43C794B48E08 2  Appreciate the emphasis on data and would like to see it continue at regional level  Interest in understanding details of length of time people are homeless, process and time to get people into housing, health impacts and constraints, and how it relates to mental health  Discussion about designated outdoor shelter area in Heritage Park: o Appreciate the efforts o Interest in the exit strategy – temporary situation o Recommend more encouragement of physical distancing and facial coverings Next Steps  Summer 2020 – report and event showcasing the Community Action Strategy focusing on scaling up solutions to overcome increasing homelessness including: o Performance targets o Existing assets and persistent gaps o Priority next steps o Resources and partnerships  Homeward 2020 and the Social Sustainability Department will provide update memos to City Council as appropriate DocuSign Envelope ID: 14F4E27D-5616-444F-9C99-43C794B48E08